Additionally, the Bill supports local farmers by offering excise duty exemptions for spirits made from agricultural products. The Bill also introduces an economic presence tax for non-residents and a minimum top-up tax for multinational companies, ensuring that global firms contribute fairly to Kenya’s economy. A key provision allows taxpayers to deduct contributions to post-retirement medical funds and the Affordable Housing Levy from their tax liabilities, thus alleviating the burden of double taxation. Among the major pieces of legislation passed is the Tax Laws (Amendment) Bill, which introduces sweeping reforms to the country’s tax regime. At the signing ceremony at the State House, President Tinubu said that the occasion presented a new lease of life to every Nigerian and future generation. The Equalization Fund Appropriation Bill grants statutory sanction for public expenditure for the year ending on 30th June, 2017, to facilitate withdrawal of funds from Equalization Fund in line with Articles 204(3) (a) of the Constitution.
- Moreover, the Bill increases penalties for non-compliance, aiming to deter businesses and individuals from bypassing the rules.
- The Bill further amends the KRA Act, giving the National Treasury Cabinet Secretary power to waive the penalty payable by an appointed agent who fails to transfer funds collected if the failure was inadvertent.
- Nairobi — President William Ruto signed the Finance Bill 2025 into law on Thursday, ushering in a raft of tax amendments and fiscal reforms designed to streamline revenue collection, ease the cost of doing business, and bolster economic growth across key sectors.
- In passing the Business Laws (Amendment) Bill 2024, the National Assembly offered a reprieve to small banks by staggering the requirement to raise their core capital to Sh10 billion.
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During a sitting that extended to almost 9 PM, close to 65 MPs unanimously described the new laws as progressive. It also restores import duties on certain raw materials to protect the local steel industry, providing a much-needed boost to Kenya’s manufacturing sector. Another significant piece of legislation signed into law is the Kenya Revenue Authority (Amendment) Bill, also sponsored by MP Ichung’wah. Akpabio congratulated members of the National Assembly and other stakeholders who made the passage of the tax bills possible.
President Ruto signs Finance Bill 2025 into law
The move seeks to ease the tax burden on salaried workers and eliminate bureaucratic hurdles that previously led to underutilization of available tax benefits. We are a leading integrated digital content platform providing in-depth business and financial news across Sub-Saharan Africa & the globe. The law will also allow the Treasury Cabinet Secretary to waive penalties exacted on appointed individuals who failed to transfer funds collected in the person was under statutory management or under receivership. This was after an uproar from small businesses which were incapable of complying effectively with the prior directives. The Kenya Bankers Association and other industry players had expressed fear that several banks would be forced to close shop or merge to meet the National Treasury’s requirement of raising the core capital from the current Sh2 billion to Sh10 billion at a go. The KRA (Amendment) Act 2024 provides for the appointment of deputy Commissioners by the Commissioner General.
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The bills were presented to the President for signature by Solicitor General Ken Ogeto at the brief ceremony attended by Agriculture CS Peter Munya, Senate Speaker Ken Lusaka and Leader of Majority in the National Assembly Amos Kimunya. AllAfrica is a voice of, by and about Africa – aggregating, producing and distributing 500 news and information items daily from over 110 African news organizations and our own reporters to an African and global public. The Cost of petrol and diesel decreases by Ksh8.80 and Ksh7.35 respectively, while that of kerosene increases by Ksh10.71. Early this year, the opposition organized a number of anti-government demonstrations about the rising expense of living, some of which became fatal as police and protesters clashed in the streets.
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The Bill assented to President Ruto states that the Chairperson of the Commission must possess qualifications equivalent to those required for a High Court judge, enhancing the capacity of the Commission to provide leadership and strategic direction. Meanwhile, the Ethics and Anti-Corruption Commission (Amendment) Bill brings much-needed reforms to the fight against corruption. It is expected that this streamlined board structure will improve the oversight and management of Kenya’s road development projects. Furthermore, the Bill increases the mortgage interest deduction limit from Sh300,000 to Sh360,000, encouraging homeownership among Kenyans.
However, after intense lobbying from banks, the timeframe for this attainment was upped from 3 years to 8 years. The information president kenyatta signs tax laws needed on the invoices include the designation ‘TAX INVOICE’, the name and address, the supplier’s PIN, and purchaser’s details. The amendments saw the introduction of reverse ticketing – where a buyer would issue a tax invoice to ascertain tax liability. Individuals who retire early due to health reasons or withdraw from the fund after 20 years of membership will also be exempted from taxes on their pension benefits.
- Also signed into law Wednesday is the Tea Bill of 2018 which contains several reforms among them the re-engineering of the Tea Board of Kenya to oversee the development, promotion and regulation of Kenya’s tea sector.
- This move aims to improve transparency and ensure that the public is aware of the legal status of various regulatory instruments.
- Further, the Bill amends the Special Economic Zones Act to empower the respective Cabinet Secretary to set the minimum amount to be invested in a special economic zone and for a one-stop shop where enterprises can send all their applications for ease of doing business.
- President Uhuru Kenyatta today at State House, Nairobi, signed into law the Tax Laws (Amendment) Bill 2020 which was passed yesterday by Members of the National Assembly.
- For instance, mortgage interest deductions have been increased, and pension contributions now enjoy more favourable tax treatment.
- The Business Laws (Amendment) Bill now law, introduces significant changes to the business landscape in Kenya.
The new Act, has amended Section 38 of the Retirement Benefits Act (1997) to allow access to retirement benefits for purposes of purchase of a residential house. This is aimed at increasing home ownership in the country as envisaged in the housing pillar under the Big 4 Agenda. The tax exemptions had been issued by President Kenyatta to cushion Kenyans against the economic meltdown occasioned by COVID-19 pandemic. The law reverses tax cushions granted to Kenyans since March when the COVID-19 pandemic hit the country, in what will put a new economic strain on Kenyans following the collapse of most businesses. “This provision will ensure that employees receive their full tax benefits without needing to make separate claims, improving compliance and fairness in the tax system,” said Kuria Kimani, the Chairperson of the Departmental Committee on Finance and National Planning, who sponsored the Bill. Kenyan President Uhuru Kenyatta has signed a new finance bill into law, officially introducing a series of new taxes, including one on fuel, which has led to public anger and strikes.
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“In simple terms, these bills seek to address Kenya’s fiscal deficit by broadening the tax base, improving compliance, and aligning with international tax standards,” said Alex Kanyi and Lena Onyango, partners at law firm Cliffe Dekker Hofmeyr (CDH) Kenya. Nairobi — President William Ruto signed the Finance Bill 2025 into law on Thursday, ushering in a raft of tax amendments and fiscal reforms designed to streamline revenue collection, ease the cost of doing business, and bolster economic growth across key sectors. NAIROBI, Kenya, June 25 – President William Ruto signed the Finance Bill 2025 into law on Thursday, ushering in a raft of tax amendments and fiscal reforms designed to streamline revenue collection, ease the cost of doing business, and bolster economic growth across key sectors. Contributions to the Affordable Housing Levy or post-retirement medical funds can now be deducted from payable tax liability to prevent double taxation after amendments to the Income Tax Act.
As a result, individuals can now deduct a higher amount of interest paid on loans for the purchase or improvement of their residential properties when calculating their taxable income. The same was true for the Tax Procedures Amendment Bill, the Business Amendment Laws, and the Statutory Instruments (Amendment) Bill. “I am so proud of this House, Mr. Speaker, that we have all in one accord passed laws that serve the parts of the nation now and for future generations,” he added. These changes are expected to foster greater stability in Kenya’s financial system while also making it easier for businesses to thrive. The Statutory Instruments (Amendment) Bill introduces stricter compliance mechanisms for statutory instruments, allowing Parliament to publish the nullity of regulations that are not submitted properly.
A key highlight of the new law is a mandatory amendment to the Income Tax Act requiring all employers to automatically apply all applicable tax reliefs, deductions, and exemptions for their employees. One of the standout provisions is the automatic application of tax reliefs, deductions, and exemptions by employers on behalf of their employees. The Appropriation Bill which the President signed into law was passed by the National Assembly this week and it grants for the issue, out of Consolidated Fund, the sum of Ksh. 1,266,794,262,462 required to meet public expenditure during the financial year ending on 30th June, 2018. The new law also outlines procedures by which decisions made by a county government public service are considered inconsistent with laws, regulations and policies and can be contested by a dissatisfied person.